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What is a limited liability partnership (LLP)?
What is a limited liability partnership (LLP)?
- A structure that does not protect personal assets from business debts and liabilities
- A type of business with unlimited personal liability for partners
- A form of business that offers no flexibility in ownership and management structures
- A legal structure combining the advantages of a partnership and a corporation (correct)
Why is converting from a private company to an LLP considered a strategic move for businesses?
Why is converting from a private company to an LLP considered a strategic move for businesses?
- It increases personal liability for partners
- It reduces the flexibility in ownership and management
- It limits the benefits for the partners
- It establishes a more favorable legal and financial framework (correct)
What is one of the benefits of converting to a limited liability partnership?
What is one of the benefits of converting to a limited liability partnership?
- Limited personal liability for partners (correct)
- Unlimited personal liability for partners
- No flexibility in ownership and management structures
- Increased personal liability for partners
What does an LLP offer in terms of personal liability for partners?
What does an LLP offer in terms of personal liability for partners?
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What is the key advantage of an LLP's management structure?
What is the key advantage of an LLP's management structure?
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